Printer Friendly

SAVVY INDIVIDUAL INVESTORS ARE BULLISH ON FIRST 100 DAYS; QUICK & REILLY 500 WINTER SURVEY SHOWS INVESTORS REGAIN CONFIDENCE -- BUT CUTTING DEFICIT STILL HIGHEST PRIORITY

 NEW YORK, Jan. 19/PRNewswire/ -- As the first 100 days of the Clinton Administration begin, previously bearish individual investors turn strongly bullish on the economy and stock market, adding further support to views that the nation's economy is in recovery.
 The third quarterly Quick & Reilly 500 survey finds that more than half of the nation's most sophisticated individual investors currently consider themselves bullish on the economy -- a dramatic 80 percent increase from three months ago.
 In addition, respondents show strong confidence in the stock market, with 82 percent believing the stock market will rise or stay about the same in the next three months. In line with this increased optimism, 54 percent of investors agree that now is an excellent time to invest in the stock market, up from 39 percent last Fall and 47 percent last Spring.
 Investors are expressing their increased confidence in the stock market through greater investing activity; the number of investors who have made transactions over the past three months has increased to 67 percent, from 57 percent last September. Of those making transactions, more than half say they are buying more stocks than they are selling, as opposed to only 19 percent who say they are selling more than they are buying.
 Thomas C. Quick, president of Quick & Reilly, Inc., said, "There is no doubt that individual investors are placing greater faith in the str?ket and economy on the eve ofe? new administration. We have seen the volume of purchase transactions increase dramatically since the election."
 Advice to Clinton: Cut the Deficit
 While generally more positive on the state of the market and economy as a whole, investors still believe economic issues should be the chief concern of the new administration. When asked what should be the top priority of Clinton's first 100 days in office, 27 percent of investors respond "cutting the budget deficit"; "investment in jobs" ranks second with 17 percent and "healthcare" third with 16 percent. In choosing between cutting the deficit and investment in jobs as priorities for the short term, 54 percent feel the deficit should be a greater priority.
 Mr. Quick said, "These sophisticated investors represent a group which plays an important role in driving the economy.
 Their concern about the budget deficit should therefore serve as a strong recommendation to President-elect Clinton that he make solving the deficit problem his number one domestic target."
 Tax incentives to encourage capital investments ranked highest among investors as a means to revitalize the economy, favored by 88 percent of respondents, while 72 percent of investors favored reduction of the budget deficit through military spending cuts. Interestingly, individual investors showed less support for income tax reduction for middle income households, an initiative which could be dropped from the Clinton agenda, according to recent news reports.
 Advice to Investors: How to Reduce Personal Taxes
 Among investment vehicles individual investors say they will be using in 1993 to help reduce personal taxes, employee-sponsored plans such as the 401K are most popular, cited by 35 percent of respondents. Others which ranked high on the list include municipal bonds (30 percent), individual retirement accounts (28 percent) and interest deductions on residential property (26 percent).
 On average, these investors prefer an ideal portfolio mix which is slightly more weighted to stocks than what they favored last Fall. Right now, investors recommend a portfolio of 50 percent in stocks, 22 percent in bonds and 28 percent in cash. However, this still represents a much more conservative mix than those currently recommended by many retail brokerage firms, which generally favor cash allocations ranging from 0 to 15 percent.
 Other major findings of the Quick & Reilly 500 include:
 Investor Sentiment
 -- The number of respondents indicating that there is too much economic uncertainty to be buying stocks actively right now is down to 50 percent, compared with 67 percent last Fall and 61 percent last Spring.
 -- Individual investors express increased confidence in individual stocks, with 54 percent saying now is an excellent time to invest in stocks, up from 39 percent last Fall. Interest in mutual funds remains steady.
 -- Ninety-six percent of investors believe interest rates will rise or stay about the same over the next six months, an increase of 11 percentage points since last Fall.
 Recharging the Economy
 -- Reduction of income tax for middle income households receives the least support as a means to revitalize the economy, with 61 percent in favor, behind increased investment in infrastructure (62 percent), reduction of deficit by military spending cuts (72 percent) and tax incentives (88 percent).
 -- Younger investors (under 50) are more likely to favor a middle class tax cut (69 percent) and reducing the deficit (58 percent) than are older investors (over 50) at about 55 percent and 50 percent, respectively.
 -- Bears (85 percent) and neutrals (85 percent) are less likely to favor tax incentives than are Bulls (92 percent).
 -- Bulls (66 percent) are more likely to favor investment in infrastructure than are Bears (60 percent) and neutrals (55 percent).
 Investor Behavior
 -- The oldest group of investors (65+) are most likely to have an ideal portfolio with a higher percentage of bonds (25 percent).
 -- Younger investors (43 percent) indicate that they are more likely to purchase mutual funds than are older investors between 50 and 64 (37 percent) and those over 65 (27 percent).
 -- Investors with portfolios less than $250K are more likely to allocate a higher proportion of their portfolios to cash (30 percent) than are those with portfolios exceeding $250K (22 percent).
 The Quick & Reilly 500 is compiled from the results of a survey conducted among investor clients of Quick & Reilly, Inc. The Wirthlin Group interviewed 502 individuals nationwide between January 2 and 4. Sample error for a group of this size is plus or minus 4.5 percent, at the 95 percent confidence level.
 Quick & Reilly, Inc. was the first New York Stock Exchange (NYSE) member firm to offer discounted commissions to the nation's most sophisticated individual investors. Headquartered in New York, Quick & Reilly, Inc. services its clients through 81 offices in every major city across the country.
 Quick & Reilly Group, Inc. is also the holding company for U.S. Clearing Corp., which provides clearing and execution services for 156 brokerage and banking firms in addition to 81 Quick & Reilly offices; and JJC Specialist Corp., which makes markets in the stocks of more than 120 NYSE listed companies.
 QUICK & REILLY 500 INDEX HIGHLIGHTS -- WINTER, 1993
 The Quick & Reilly 500 Index is the first quantitative measure of individual investor sentiment. Index questions -- posed to 500 of the nation's most sophisticated individual investors -- encompass a number of areas ranging from outlook on the economy and stock market to opinions about policy (52 percent) of sophisticated individual investors currently consider themselves bullish on the economy, an increase of 80 percent from three months ago.
 -- Eighty-two percent believe the stock market will rise or stay about the same over the next three months.
 -- Nearly half (45 percent) of investors believe the recession is almost over, and more than one-quarter (27 percent) believe the recession has already ended.
 -- Individual investors express increased confidence in individual stocks, with 54 percent saying now is an excellent time to invest in stocks, up from 39 percent last Fall and 47 percent last Spring. Interest in mutual funds remains steady.
 -- The number of respondents indicating that there is too much economic uncertainty to be buying stocks actively right now is down to 50 percent, compared to 67 percent last Fall and 61 percent last Spring.
 -- Ninety-six percent believe interest rates will rise or stay about the same over the next six months, an increase of 11 percentage points since last Fall.
 Recharging the Economy
 -- Respondents believe that cutting the budget deficit should be President-elect Clinton's highest priority while in office, cited by 27 percent, followed by investment in jobs (17 percent) and healthcare (16 percent).
 -- Younger (under 50) investors (18 percent) are more likely to feel the economy should be President-elect Clinton's highest priority than are older (over 50) investors (10 percent).
 -- Younger investors are more likely to favor a middle class tax cut (69 percent) and reducing the deficit (58 percent) than are older investors (55 percent and 50 percent, respectively).
 -- When asked to choose between cutting the deficit and investment in jobs as priorities for the short term, 54 percent believe the deficit should be a greater priority.
 -- Tax incentives to encourage capital investment ranked highest among investors as a means to revitalize the economy, favored by 88 percent, followed by reduction of the budget deficit through military spending cuts (72 percent), investment in infrastructure (62 percent) and a middle class tax cut (61 percent).
 -- Bears (85 percent) and neutrals (85 percent) are less likely to favor tax incentives than are Bulls (92 percent).
 -- Bulls (66 percent) are more likely to favor investment in infrastructure than are Bears (60 percent) and neutrals (55 percent).
 Investor Behavior
 -- The number of investors making stock transactions during the past three months has increased to 67 percent, from 57 percent last Fall.
 -- Of those making transactions, 51 percent say they are buying more stocks than they are selling; only 19 percent say they are selling more than they are buying.
 -- Investors favor a portfolio more weighted to stocks than three months ago, with 50 percent in stocks, 22 percent in bonds and 28 percent in cash; this is still a more conservative mix than those recommended by retail brokerage firms, which generally favor cash allocations ranging from 0 to 15 percent.
 -- The oldest group of investors (65+) are most likely to have an ideal portfolio with a higher percentage of bonds (25 percent).
 -- Investors with portfolios less than $250K are more likely to allocate a higher proportion of their portfolios to cash (30 percent) than are those with portfolios exceeding $250K (22 percent).
 -- Younger investors (43 percent) indicate that they are more likely to purchase mutual funds than are older investors between 50 and 64 (37 percent) and those over 65 (27 percent).
 -- Investors are more likely to use employee-sponsored plans such as the 401K (35 percent) to help reduce their personal taxes in 1993, followed by municipal bonds (30 percent), individual retirement accounts (28 percent) and interest deductions on residential property (26 percent).
 Regional Differences
 -- Northeasterners are more bullish (60 percent) on the stock market and more optimistic about the economy (74 percent) than they were three months ago; as a result, they are stronger on investing now (2 percent more active).
 -- Southerners, who tend to be older than investors in other regions, are more likely to have changed to a more cautious approach over the last three months, with only 20 percent saying they are more active, and only 46 percent believing that now is a good time to be investing in stocks.
 -- Southerners would allocate the smallest percentage of their portfolios to stocks (44 percent) compared to other regions, and the highest percentages to cash (32 percent) and to bonds (24 percent).
 -- Midwesterners are the most optimistic about the stock market with 56 percent expecting a rise within the next three months; accordingly, they allocate the highest percentage of their portfolios to stocks (55 percent).
 -- Westerners are the most pessimistic about the economy; Western investors are most likely to believe the economy is still in a recession (30 percent) and least likely to think the stock market will rise in the next three months (42 percent). However, they are also the most hopeful about the Clinton Administration's effect on the economy (22 percent).
 Quick & Reilly 500 Index Respondent Profile:
 -- Active individual investors: more than three-quarters (80 percent) have made two or more transactions during the past three months.
 -- 92 percent are age 35+. 66 percent are under age 65.
 -- 80 percent have an investment portfolio totalling more than $25,000; 22 percent have portfolios in excess of $250,000.
 -- 81 percent are male, 19 percent are female.
 -- 26 percent are from the Northeast; 30 percent from the South; 18 percent from the West and 27 percent are from the Midwest.
 -0- 1/19/93
 /CONTACT: Thomas C. Quick, president of Quick & Reilly, Inc., 212-747-4840, or Bill Reddig of Hill and Knowlton, Inc., 212-697-5600, for Quick & Reilly, Inc./


CO: Quick & Reilly ST: New York IN: FIN SU: ECO

TS -- NY016 -- 6169 01/19/93 09:22 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 19, 1993
Words:2052
Previous Article:METROMEDIA COMMUNICATIONS CORP. AND RESURGENS COMMUNICATIONS GROUP ANNOUNCE MERGER PLANS
Next Article:NEW TYPE POLYPROPYLENE USED IN ARTIFICIAL GRASS BY ASTROTURF MAKER
Topics:


Related Articles
QUICK & REILLY GROUP REPORTS RECORD QUARTERLY EARNINGS; THIRD QUARTER NET INCOME UP 139 PERCENT, REVENUES CLIMB 60 PERCENT
QUICK & REILLY ANNOUNCES SERVICE GUARANTEE -- AN INDUSTRY FIRST
QUICK & REILLY GROUP REPORTS FIRST QUARTER EARNINGS; NET INCOME UP 41.4 PERCENT, REVENUES CLIMB 42.3 PERCENT
SAVVY INDIVIDUAL INVESTORS BACK BUSH, BUT EXPECT CLINTON WILL WIN -- CAUSING STOCK MARKET TO DROP
SOPHISTICATED INVESTORS SEE NO TAX RELIEF IN SIGHT; ONE IN THREE ADDS TAX-REDUCING INVESTMENTS TO PORTFOLIO
FEWER INVESTORS EXPECT ECONOMY TO GET STRONGER; CLINTON'S ECONOMIC PERFORMANCE RATING DROPS 15 PERCENT
BULLISHNESS PERSISTS DESPITE CLOUDY ECONOMIC FORECAST
INDEX REPORTS STRONG INVESTOR CONFIDENCE FOLLOWING WAVE OF STRATEGIC MERGERS AND CONTINUED BULL MARKET
TAX TIME FINDS CONTINUING INVESTOR OPTIMISM ABOUT THE INVESTMENT CLIMATE
Quick & Reilly 500 Index Begins Its Fifth Year

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters